02/11/2011 03:15 PM House LABOR & COMMERCE

          HB 12-WORKERS' COMPENSATION ADVISORY COUNCIL                                                                      
                                                                                                                                
4:10:14 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
HOUSE   BILL  NO.   12,  "An   Act   establishing  the   Workers'                                                               
Compensation  Advisory   Council,  and  abolishing   the  Medical                                                               
Services Review Committee; and providing for an effective date."                                                                
                                                                                                                                
4:10:37 PM                                                                                                                    
                                                                                                                                
KONRAD JACKSON,  Staff, Representative  Kurt Olson,  Alaska State                                                               
Legislature,  explained that  HB  12 would  establish a  Workers'                                                               
Compensation Advisory  Council (WCAC).   He related that  this is                                                               
one of  the MSRC's  recommendations as  outlined in  its November                                                               
2009 report  on pages  13-14 of  the report.   This bill,  HB 12,                                                               
incorporates the  recommendation for the WCAC's  composition.  It                                                               
would  consist of  11  voting  and 5  non-voting  members:   four                                                               
voting members representing organized  labor, four voting members                                                               
representing  various employer  groups and  three voting  members                                                               
from  the various  medical societies.   Non-voting  members would                                                               
provide expertise, with two members  from the insurance industry,                                                               
two ex officio members from the  legislature - one from each body                                                               
- and the  DOL commissioner or his/her designee.   He pointed out                                                               
that 11  of the 16 members  would be voting members  and the rest                                                               
would be non-voting or ex officio  members.  He remarked that the                                                               
WCAC's membership  makeup did not receive  overwhelming consensus                                                               
and  it  passed by  a  simple  majority.    He said  the  sponsor                                                               
believes  this  is  a  worthwhile  council  to  establish.    One                                                               
recommendation the  MSRC made was  that all  WCAC recommendations                                                               
or decisions  should be  adopted by  a three-fourths  majority of                                                               
the  voting  members present,  but  that  recommendation was  not                                                               
incorporated in this bill to avoid  a pocket veto of the minority                                                               
members of the council.                                                                                                         
                                                                                                                                
MR. JACKSON  concluded by reminding  members that this  bill sets                                                               
up  an "advisory"  council and  not  an exclusive  panel to  rule                                                               
Workers' Compensation.   This council  would serve to  advise the                                                               
legislature and the Workers' Compensation Board.                                                                                
                                                                                                                                
4:13:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER asked  whether  this WCAC  has any  powers                                                               
besides the advisory capacity and role.                                                                                         
                                                                                                                                
MR. JACKSON  referred to page  2, subsection (g), the  WCAC shall                                                               
advise  the   department  on  all   matters  pertaining   to  the                                                               
application, revision, and operation of  this chapter.  Thus, the                                                               
WCAC operates only in an advisory  capacity.  The bill spells out                                                               
the number of meetings but the WCAC is solely advisory.                                                                         
                                                                                                                                
REPRESENTATIVE  MILLER asked  for the  rationale for  the board's                                                               
composition.                                                                                                                    
                                                                                                                                
MR.  JACKSON agreed  that 11  members are  voting members  on the                                                               
proposed WCAC.   He stated  that the composition  was established                                                               
by the Medical Services Review Committee.                                                                                       
                                                                                                                                
MR. JACKSON  referred to page  1 to  paragraph (3), to  the three                                                               
members from  the medical  care providers.   He related  that the                                                               
process for attaining voting membership  was contentious, but the                                                               
MSRC decided this by simple majority.                                                                                           
                                                                                                                                
4:15:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER  asked  whether  part  of  contentiousness                                                               
within the  discussion had  to do  with the  number of  votes for                                                               
industry.  He could foresee  seven votes were not representatives                                                               
of the  labor industry.  Thus,  labor could be the  minority, yet                                                               
the issues of Workers' Compensation are labor related.                                                                          
                                                                                                                                
MR. JACKSON said  he also thought that employees  could work with                                                               
the  doctors and  overrule the  employer.   He  pointed out  that                                                               
coalition happens in the legislature  and is part of the process.                                                               
The intent  is to strive for  a balance without any  group having                                                               
dominance.   He  pointed out  that the  three members  of medical                                                               
care providers  have less representation,  but the  medical field                                                               
has a  vested interest  since the doctors  are paid  for services                                                               
provided to  the injured worker.   He  also pointed out  that the                                                               
employer has  a vested  interest to have  the employee  return to                                                               
work, while the employee also wants  to return to work and obtain                                                               
a full  paycheck.   He reiterated  that the  proposed composition                                                               
seemed  to  provide  a  balance.     Nothing  prevents  consensus                                                               
building as a means of representing his/her constituency.                                                                       
                                                                                                                                
4:17:55 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  provided history on  the issue.   The prior  bill on                                                               
this issue went as far as  the House Finance Committee last year.                                                               
He agreed  that it  was one  of the more  contentious bills.   He                                                               
said, "No  one likes it, but  most of the people,  I believe, can                                                               
live with it.   We've had minimal contact from  any of the groups                                                               
with  a  vested  interest  this  go  around."    He  offered  his                                                               
intention to  hold HB 12  over, although  he did not  believe any                                                               
new  constituencies would  be added  to  the proposed  WCAC.   He                                                               
pointed  out that  the  key word  is that  the  proposed WCAC  is                                                               
"advisory."                                                                                                                     
                                                                                                                                
4:19:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  referred  to the  employer  composition,                                                               
noting the four  members were broken down by category.   He asked                                                               
to  know  more about  the  process  used  to identify  who  would                                                               
represent employers and labor representatives.                                                                                  
                                                                                                                                
MR. JACKSON  answered that the  MSRC made recommendations  on the                                                               
proposed WCAC.  He also related  that the sponsor wanted to limit                                                               
the overall size of the proposed WCAC so limits were imposed.                                                                   
                                                                                                                                
[HB 12 was held over.]